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2021-04-30-accounts

RECYCLING LIVES CHARITY

ANNUAL REPORT

AND

FINANCIAL STATEMENTS FOR

THE YEAR ENDED APRIL 30 2021

Company number: 05781363 Charity number: 1116562

RECYCLING LIVES CHARITY ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED APRIL 30 2021

INDEX
Administrative information 1
Trustees’ and Directors’ annual report 2 – 7
Auditors’ report 8 – 10
Group statement of financial activities 11
Company statement of financial activities 12
Group balance sheet 13
Company balance sheet 14
Statement of cash flows 15
Notes to the financial statements 16 – 29

RECYCLING LIVES CHARITY ADMINISTRATIVE INFORMATION FOR THE YEAR ENDED APRIL 30 2021

DIRECTORS/TRUSTEES

Name Appointed/Resigned W Fletcher Resigned 20/07/20 C Jackson B Mayne D Snape J B Taylor (Chair) C M Whalley-Hunter Appointed 02/04/21 N Whittle SENIOR MANAGEMENT TEAM Chief Executive A B Jackson Head of Operations T R Carysforth Head of Rehabilitation B J Flanagan Head of Residential N Flanagan Food Distribution Manager J Green (* are employed by the subsidiary company)

REGISTERED OFFICE AND PRINCIPAL PLACE OF BUSINESS 1a Essex Street Preston Lancashire PR1 1QE AUDITORS Chittenden Horley HGA Accountants & Financial Consultants Ltd Chartered Accounts and Statutory Auditors 456 Chester Road Old Trafford Manchester M16 9HD SOLICITORS Brabners LLP 55 King Street Manchester M2 4LQ BANKERS Allied Irish Bank 4 Hardman Street Manchester M3 3HF

1

RECYCLING LIVES CHARITY TRUSTEES’ AND DIRECTORS’ ANNUAL FOR THE YEAR ENDED APRIL 30 2021

The trustees present their annual report together with the consolidated financial statements of the charity and its subsidiary for the year ended April 30 2021. Although the accounting reference date is to April 29[th] , for administrative reasons the accounts have been prepared to April 30[th] .

REPORTING FRAMEWORK

The trustees’ annual report and financial statements comply with the Charities Act 2011, the Companies Act 2006, the Memorandum The financial statements comply with the Charities Act 2011, the Companies Act 2006, the Memorandum and Articles of Association, and Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) (effective 1 January 2019), referred to as the Charities SORP (FRS 102) (second edition – October 2019).

OBJECTS AND ACTIVITIES

Charitable Objects are set out in the Articles of Association as follows.

1.1 The Charity’s Objects are the promotion for the public benefit of urban or rural regeneration in areas of social and economic deprivation (and in particular, but not limited to, Lancashire) by all or any of the following means:

1.1.3 the advancement of education, training or retraining, particularly among unemployed people, and providing unemployed people with work experience;

1.1.4 the provision of financial assistance, technical assistance, or business advice or consultancy in order to provide training and employment opportunities for unemployed people in cases of financial or other charitable need through help

1.1.4.2. to existing businesses;

1.1.5 the creation of training and employment opportunities by the provision of workspace, buildings and/or land for use on favourable terms;

1.1.6 the provision of housing for those who are in conditions of need and the improvement of housing in the public sector or in charitable ownership provided that such power shall not extend to relieving any local authorities or other bodies of a statutory duty to provide or improve housing;

1.1.7 the maintenance, improvement or provision of public amenities;

1.1.8 the preservation of buildings or sites of historic or architectural importance;

1.1.9 the provision or assistance in the provision of recreational facilities for the public at large and/or those who, by reasons of their youth, age, infirmity or disablement, poverty or social and economic circumstances, have need of such facilities;

1.1.10 the protection or conservation of the environment;

1.1.11 the promotion of public safety and prevention of crime; and

1.1.12 such other means as may from time to time be determined subject to the prior consent of the Charity Commission for England and Wales.

2

RECYCLING LIVES CHARITY TRUSTEES’ AND DIRECTORS’ ANNUAL FOR THE YEAR ENDED APRIL 30 2021

ACTIVITIES

The charity undertakes the following activities either itself of through its subsidiary company in pursuit of its objectives:

AIMS FOR 2020/21

Once again, the aims of the Recycling Lives Charity and our Social Enterprise remained simple; to be there to help people be the best they can be. That never really changes. Our three main programmes of food redistribution, rehabilitation and residential will continue to provide quality assistance to those who need us.

However, we need to recognise that we are in the unprecedented situation of a global pandemic. Clearly that changes many things.

So, put simply, there are 3 aims for this year.

  1. To ensure that we protect the jobs and wellbeing of all staff and volunteers through Covid.

  2. To continue to offer the support to our participants and recipients through whatever means we can. That will mean diversification in communication methods at times and using non face to face interventions where necessary. Key is that we strive at all times to do the best we possibly can for all.

  3. To closely monitor the financial standing of the organisation and look for ways to diversify the income where our more normal streams have been temporarily closed to us. The be all and end all is that we are still here post-pandemic and able to deliver our current programmes and more.

ACHIEVEMENTS AND PERFORMANCE

We began the financial year with all of our prison workshops closed, the residential programme in lockdown, the community programmes unable to function, and a food distribution centre (FDC) which was struggling to cope with the ever-growing needs of the people suffering food poverty throughout Lancashire and Cumbria.

We had many operational staff on furlough as their workplaces were locked down. That meant the recycling income from our prison workshops dropped to zero for a very long period. The community café was also shut. That accounted for over 60% of our normal income.

We couldn’t just close the food redistribution centre though. The need was growing by the day. However, many of the volunteers upon whom we rely so much had to self-isolate to stay safe which meant the ever-growing need was being fulfilled by an ever shrinking workforce.

Clearly a residential programme cannot simply be shut or mothballed. Instead, we created a bubble environment which enabled the work to carry on.

What about the prison leavers and the men and women in our community programmes who still needed help with employment, accommodation, and pastoral issues? Those problems were magnified by the pandemic, so we needed to create new ways of communicating from home by using virtual technology and phone.

How did we do it without 60% of our income? Through the dedication of our team and by leaving no financial opportunity unturned. For the first time, we learned how to write grant applications and spoke to funders about our work. It paid off. Grant income rose and we were also able to re-allocate and bring forward money from a grant from the National Lottery Community Fund. This enabled us to pay the wages and the bills at a basic level.

We didn’t stop there though. We looked at everything we did and searched for improvements. Not cutting, improving. So we took advantage of the money that became available and invested in new capital projects to make things work better. New racking, chillers, freezers and vehicles were funded for the FDC. That took some of the strain away from the team. We put new systems in which made the process easier and meant we could work with the increased quantities of food we needed to provide.

Similarly, we sought donations which have enabled us to completely revamp the residential area. The new kitchen and laundry areas have helped transform the offer.

3

RECYCLING LIVES CHARITY

TRUSTEES’ AND DIRECTORS’ ANNUAL FOR THE YEAR ENDED APRIL 30 2021

We knew we had to do something about our recycling contracts, so we worked hard to temporarily redirect some stock away from prisons. Some went to partner organisations, but we were gifted temporary warehouse space of our own too. That meant we were able to open a new community workshop in Preston doing the same work as the mothballed prison workshops but in the community. It didn’t replace the lost income, but it helped.

Our partners supported us too. We were able to get rent holidays and rent cancellations of rent to help us through difficult periods.

A gamechanger for us was the negotiation of a unique and long-term sponsorship deal with our partner Recycling Lives Ltd. This money has allowed us to pay off an historic loan to them but furthermore, helped to secure our future financial solidity. Not only that, it will enable us to grow the teams and the offer.

As the financial year progressed into 2021 things began to ease. Prison workshops began to tentatively reopen. Face to face consultations with participants were possible again. The improvements in the FDC started to really bear fruit. We entered a space where we were growing back again but with the added advantage of having diversified our income streams. Oddly, we were in a better place.

The teams, too, had come together, worked better and communicated more. Old metaphorical departmental walls were knocked down as people worked across the whole organisation for the common good.

Did it work for the people we are here to help? Some of the highlights…

When you consider the background against which we were working these achievements are incredible. They are a testament to the adaptability, resilience, skill and sheer hard work of the people within this amazing organisation.

It will be noted that, despite all of the obstacles put in front of us, we have ended the year in a substantially better financial position than ever before. For the first time we are in a position to plan for substantial growth. Whilst that money looks good in the accounts, we need to use it wisely.

FINANCIAL REVIEW

Overview

The Group delivered a surplus for the year on unrestricted funds, after transfers, of £743,041 (2020: surplus - £203,910 and the charity had a surplus of £760,477 (2020: deficit - £14,936). Overall, the trustees are pleased with group’s performance which has contributed significantly to securing its financial stability.

Subsidiary company – Recycling Lives (Social Enterprises) Ltd (RLSE)

With the exception of the accommodation programme, substantially all the activities are undertaken by the subsidiary RLSE, including some which could be considered charitable.

The directors and charity trustees are undertaking regular reviews of the activities carried out by RLSE to ensure that only low risk, fully funded and/or profitable activities, which are appropriate for it to undertake as the subsidiary of a charity, are continued.

RLSE eliminated the deficit on its funds in 2019/20 meaning that has been able to make a payment to the Charity of its taxable profits for that year of c£67k under gift aid, and for 2020/21 c£755k.

Principal Funding Sources

The charity is mainly funded via its wholly owned subsidiary Recycling Lives (Social Enterprises) Ltd (RLSE), through its various income generating activities. During the pandemic some of those income streams were negatively affected, and both the charity and its subsidiary were able to attract funding and donations to cover those gaps.

RLSE has a diverse range of funding streams including the National Lottery and commercial arrangements with Recycling Lives Limited for recycling work, which it carries out in prisons and community workshops, and social value sponsorship.

Going concern

In the opinion of the Trustees, there is no material uncertainty regarding the charity’s or charity group’s ability to continue as a going concern. The Trustees note the dramatically improved financial performance of the group in 2020/21 which has enabled us to hit our desired reserves figure. It is anticipated that sensible spending and growth will follow which will mean the charity remains financially sound.

4

RECYCLING LIVES CHARITY TRUSTEES’ AND DIRECTORS’ ANNUAL FOR THE YEAR ENDED APRIL 30 2021

Risk Management

The Trustees regularly review the risks to which the charity is exposed and seek to apply appropriate strategies to mitigate, lay-off and manage these risks.

The Trustees consider that the current practices and future plans to respond to these risks are appropriate and that, as a result, such risks are being effectively managed.

Reserve Policy

During the year the Trustees have reviewed their policy for financial reserves. The target of free reserves (unrestricted funds not invested in fixed assets or otherwise designated) was set at £200k.

At April 30 2021, the charity’s free reserves were £760,725. The trustees are in the process of formulating plans for the use of the reserves above the target level.

FUTURE PLANS

We have set aside a reserves figure to cover for future unforeseen events and, in addition we have planned for the following:

All of this needs to be done wisely. We are well aware that the pandemic actually brought us financial opportunities which may never come again. We cannot expect the flurry of grant income to repeat ad infinitum. Sensible and well thought out growth is key and we believe this will organically lead to more opportunities for the men and women we help.

5

RECYCLING LIVES CHARITY TRUSTEES’ AND DIRECTORS’ ANNUAL FOR THE YEAR ENDED APRIL 30 2021

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing Document

The organisation is a charitable company limited by guarantee, established by its Memorandum of Association and is governed under its Articles of Association dated April 13 2006, as amended by special resolution dated July 4 2006 and further amended by special resolution dated 24[th] July 2019.

Members of the company

Following the latest change to the Articles of Association, the membership of the company is restricted to the trustees and terminates if a member ceases to be a trustee, except that, if retiring at an AGM, all the trustees remain members until the conclusion of the meeting.

Recruitment and Appointment of Trustees/Directors

The Directors who served during the year together with any changes are listed on page one of the annual report. The Directors are appointed by the members at the AGM or are co-opted by the trustees. All trustees retire at the AGM and are eligible for reelection.

Trustees are recruited with regard to the skills needed by the charity.

Induction

Trustees are inducted by spending time with senior management and visiting the various aspects of the charity. They are also given a pack of documentation consisting of polices, recent minutes and reports.

Organisation

The Board of Directors meets as necessary, and not less than four times a year. The quorum for a meeting of the Trustees is the greater of two or one third of their number. The Board is responsible for the strategic direction and policy of the charity.

The day to day operation of the charity is the responsibility of the Chief Executive and the other members of the senior management who together with the Trustees constitute the key management personnel of the charity. The members of senior management are listed on page 1.

Pay and remuneration for senior staff

Senior staff salaries are reviewed annually and benchmarked against other charities and social enterprises. Recommendations are then given to trustees for sign off each year.

Related party transactions

Whilst the charitable group maintains a healthy relationship with Recycling Lives Ltd., the previous in-kind support which was received has ceased. All transactions are now formal and contracted for services.

6

RECYCLING LIVES CHARITY TRUSTEES’ AND DIRECTORS’ ANNUAL FOR THE YEAR ENDED APRIL 30 2021

TRUSTEES’ RESPONSIBILITIES IN RELATION TO THE FINANCIAL STATEMENTS

Company law requires the trustees to prepare financial statements for each financial year, which give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing these financial statements, the trustees are required to:

The trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

STATEMENT OF DISCLOSURE TO AUDITORS

We, the directors of the company who held office at the date of approval of these Financial Statements as set out above each confirm, so far as we are aware, that:

SMALL COMPANY PROVISIONS AND APPROVAL

This report has been prepared in accordance with the provisions applicable to companies entitled to the small companies exemption.

Approved by the Board of Trustees and signed on its behalf by:

J B Taylor

J B TAYLOR

Chair of Board

Date: November 25 2021

7

INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS AND TRUSTEES OF RECYCLING LIVES CHARITY FOR THE YEAR ENDED APRIL 30 2021

Opinion

We have audited the financial statements of Recycling Lives Charity (the ‘parent charitable company’) and its subsidiaries (the 'group') for the year ended April 30 2021 which comprise SOFA, balance sheet, cashflow statement and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group’s or parent charitable company’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

Other information

The trustees are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

8

INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS AND TRUSTEES OF RECYCLING LIVES CHARITY FOR THE YEAR ENDED APRIL 30 2021

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and parent charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the [strategic report and the][7] directors’ report.

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 and the Charities Act 2011 requires us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the trustees’ responsibilities statement, set out in the Directors’ and Trustees’ Annual Report, the trustees (who are also the directors of the parent charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the groups and parent charitable company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the group or parent charitable company or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

We have been appointed auditor under the Companies Act 2006 and section 151 of the Charities Act 2011 and report in accordance with those Acts.

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Our approach to identifying and assessing the risks in respect of irregularities and non-compliance with laws and regulations, was as follows:

We assessed the susceptibility of the company’s financial statement to material misstatement, including obtaining an understanding of how fraud might occur, by:

9

INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS AND TRUSTEES OF RECYCLING LIVES CHARITY FOR THE YEAR ENDED APRIL 30 2021

To address the risk of fraud through management bias and override of controls, we:

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

No instances of material non-compliance were identified. However, there are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

Use of our report

This report is made solely to the charitable company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006 and to the charitable company’s trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charitable company’s members and its trustees those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company’s members as a body and the charitable company’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.

Peter Smith

Peter Smith– Senior Statutory Auditor

For and on behalf of:

HGA Accountants & Financial Consultants t/a Chittenden Horley Chartered Accountants and Statutory Auditors 456 Chester Road Old Trafford Manchester M16 9HD Date: 25/11/21

HGA Accountants & Financial Consultants t/a Chittenden Horley is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006.

10

RECYCLING LIVES CHARITY GROUP STATEMENT OF FINANCIAL ACTIVITIES (including the income and expenditure account) FOR THE YEAR ENDED APRIL 30 2021

Notes
INCOME
Incoming resources from generated funds:
Donations
2
Charitable activities
3
Other trading activities
4
TOTAL INCOMING RESOURCES
EXPENDITURE
Costs of raising funds
6
Expenditure on charitable activities
7
TOTAL EXPENDITURE
NET INCOME/(EXPENDITURE)
BEFORE TRANSFERS
10
Transfers between funds
16
NET INCOME/(EXPENDITURE)
AFTER TRANSFERS
TOTAL FUNDS
Brought forward
16
Carried forward
16		 Unrestricted
Restricted
Total
Total
Funds
Funds
2021
2020
£
£
£
£
304,443
37,498
341,941
238,988
1,280,306
-
1,280,306
1,977,348
679,403
-
679,403
-
2,264,152
37,498
2,301,650
2,216,336
16,156
-
16,156
44,771
1,521,610
25,404
1,547,014
1,981,192
1,537,766
25,404
1,563,170
2,025,963
726,386
12,094
738,480
190,373
16,655
(16,655)
-
-
743,041
(4,561)
738,480
190,373
199,045
4,561
203,606
13,233
942,086
-
942,086
203,606

The notes on pages 16 to 29 form part of these financial statements.

11

RECYCLING LIVES CHARITY CHARITY STATEMENT OF FINANCIAL ACTIVITIES (including the income and expenditure account) FOR THE YEAR ENDED APRIL 30 2021

Notes
Incoming resources from generated funds:
Donations
2
Charitable activities
3
TOTAL INCOME
EXPENDITURE
Costs of raising funds
6
Expenditure on charitable activities
7
TOTAL EXPENDITURE
NET INCOME/(EXPENDITURE)
BEFORE TRANSFERS
Transfers between funds
16
NET MOVEMENT IN FUNDS
TOTAL FUNDS
Brought forward
16
Carried forward
16		 Unrestricted
Restricted
Total
Total
Funds
Funds
2021
2020
£
£
£
£
934,811
37,498
972,309
97,460
52,834
-
52,834
46,402
987,645
37,498
1,025,143
143,862
-
-
-
-
243,823
25,404
269,227
142,463
243,823
25,404
269,227
142,463
743,822
12,094
755,916
1,399
16,655
(16,655)
-
-
760,477
(4,561)
755,916
1,399
61,795
4,561
66,356
64,957
822,272
-
822,272
66,356

The notes on pages 16 to 29 form part of these financial statements.

12

RECYCLING LIVES CHARITY GROUP BALANCE SHEET FOR THE YEAR ENDED APRIL 30 2021

Notes
FIXED ASSETS
Tangible Assets
11
CURRENT ASSETS
Debtors
13
Cash at Bank and in Hand
CREDITORS
Amounts falling due in one year
14
NET CURRENT ASSETS
CREDITORS
Amounts falling due in more than 1 year
15
NET ASSETS
FUNDS
Unrestricted
General fund
16
Designated fund
Restricted
16
TOTAL FUNDS		 2021
£
641,720
734,349		 2021
2020
2020
£
£
£
258,220
248,367
354,204
531,094
885,298
623,811
745,438
261,487
1,003,658
509,854
61,572
306,248
942,086
203,606
897,086
199,045
45,000
-
4,561
942,086
203,606
1,376,069
630,631

The notes on pages 16 to 29 form part of these financial statements.

Approved by the Board of Directors and authorised for issue on 25/11/21

And signed on their behalf by:

J B Taylor

J B Taylor – Chair of board

Company registration number: 05781363

13

RECYCLING LIVES CHARITY CHARITY BALANCE SHEET FOR THE YEAR ENDED APRIL 30 2021

Notes
FIXED ASSETS
Tangible Assets
11
Investments
12
CURRENT ASSETS
Debtors
13
Cash at Bank and in Hand
CREDITORS
Amounts falling due in one year
14
NET CURRENT ASSETS
NET ASSETS
FUNDS
Unrestricted
General fund
16
Restricted
16
TOTAL FUNDS		 2021
£
636,243
188,167		 2021
2020
2020
£
£
£
16,447
2,443
100
100
16,547
2,543
26,525
85,788
112,313
48,500
805,725
63,813
822,272
66,356
822,272
66,356
822,272
61,795
-
4,561
822,272
66,356
824,410
18,685

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

The notes on pages 16 to 29 form part of these financial statements.

Approved by the Board of Directors and authorised for issue on 25/11/21

And signed on their behalf by:

J B Taylor

J B Taylor – Chair of board

Company registration number: 05781363

14

RECYCLING LIVES CHARITY GROUP AND CHARITY STATEMENT OF CASH FLOWS FOR THE YEAR ENDED APRIL 30 2021

notes
Cash generated from/(used in)
operating activities
18
Cashflows from investing activities
Purchase of tangible fixed assets
Cash provided by/(used in) investing activities
Cashflows from financing activities
Proceeds from new borrowings - finance leases
Other creditors written off
Repayment of borrowing - finance leases
Cash used in financing activities
Increase/(decrease) in cash & cash equivalents in the year
Cash and cash equivalents brought forward
Cash and cash equivalents carried forward
Cash and cash equivalents consist of:
Cash at bank and in hand
Current asset investments		 Group
Group
Charity
Charity
2021
2020
2021
2020
£
£
£
£
562,475
224,172
119,034
2,636
(114,543)
(84,082)
(16,655)
-
(114,543)
(84,082)
(16,655)
-
-
-
-
-
-
186,634
-
-
(244,677)
(52,494)
-
-
(244,677)
134,140
-
-
203,255
274,230
102,379
2,636
531,094
256,864
85,788
83,152
734,349
531,094
188,167
85,788
734,349
531,094
188,167
85,788
734,349
531,094
188,167
85,788

The notes on pages 16 to 29 form part of these financial statements.

15

RECYCLING LIVES CHARITY

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED APRIL 30 2021

1 ACCOUNTING POLICIES

1.1 Basis of preparation

The financial statements have been prepared: under the historic cost convention; in accordance with the Statement of Recommended Practice – Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) effective January 1 2019 (second edition – October 2019); FRS102; and the Companies Act 2006. The charity constitutes a public benefit entity as defined by FRS102.

The accounts are prepared in £ sterling, which is the functional currency.

1.2 Income recognition

All income is recognised once the charity has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably. The following applies to particular types of income:

Grants - whether of a capital or revenue nature, are recognised when the charity has entitlement to the funds, any performance conditions have been met and it is probable that the income will be received.

Donations - from individuals and other bodies (not being of the nature of a grant) are recognised when receivable.

Rendering of services – turnover derived from rendering services is recognised by reference to the stage of completion of contract. The stage completion of a contract is measured by comparing the costs incurred for work performed to date to the total estimated contract costs. Turnover is only recognised to the extent of recoverable expenses when the outcome of a contract cannot be estimated reliably.

Deferred income

Income is only deferred and included in creditors when:

1.3 Expenditure and irrecoverable VAT

Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that the settlement will be required and the amount of the obligation can be measured reliably. Expenditure is classified under the following activity headings:

Costs of raising funds including those associated with fundraising activities, managing investments and commercial trading by the subsidiary company.

Charitable activities costs of undertaking the work of the charity.

The charity is not registered for VAT, and costs are stated inclusive of VAT where charged.

The subsidiary is registered for VAT and is able to recover some of the input tax charged as it relates to VATable supplies. Costs are stated net of VAT were charged.

1.4 Tangible fixed assets and depreciation

Tangible fixed assets are carried at costs, net of depreciation and any provision for impairment. Depreciation is provided at rates calculated to write off the cost of fixed assets, less their estimated residual value, over their expected useful lives on the following bases:

Depreciation rates, all straight line, are as follows:

Leasehold property improvements 25% Straight line Plant & Machinery 25% Straight line Catering equipment, fixtures & fittings 10%/25% Straight line Motor vehicles 25% Straight line IT equipment 25% Straight line

1.5 Debtors

Trade and other debtors are recognised at the settlement amount due and prepayments are valued at the amount prepaid.

1.6 Cash at bank and in hand

Cash at bank and in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.

16

RECYCLING LIVES CHARITY NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED APRIL 30 2021

1 ACCOUNTING POLICIES (continued)

1.7 Creditors and provisions

Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount.

1.8 Taxation

Income tax expense represents the sum of the tax currently payable and deferred tax.

The tax currently payable is based on taxable profit for the year. Taxable profit differs from profit as reported in the statement of comprehensive income because of items of income or expense that are taxable or deductible in other year and items that are never taxable or deductible. The company's liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the end of the reporting period.

Current tax for the year is recognised in profit or loss, except when they related to items that are recognised in other comprehensive income or directly in equity, in which case, the current and deferred tax is also recognised in other comprehensive income or directly in equity respectively.

There is no liability to income tax in the subsidiary because it donates its taxable profits to the charity. The charity is exempt from income tax.

1.9 Financial instruments

A financial asset or a financial liability is recognised only when the entity becomes a party to the contractual provisions of the instrument.

Basic financial instruments are initially recognised at the transaction price, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.

All the financial instruments in these accounts are considered to be basic financial instruments.

1.10 Group financial statements

The financial statements consolidate the results of the charity and its wholly owned subsidiary on a line by line basis.

17

RECYCLING LIVES CHARITY NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED APRIL 30 2021

2 DONATIONS
GROUP
As below
Donation - Commercial group
Donations
HMRC - CJRS grant
CHARITY
Project grants
Albert Gubay
Donations
General
For Japanese Tea Garden
Donation from SE
Total for company		 2021
Unrestricted
Restricted
Total		 2020
Unrestricted
Restricted
Total
£
£
£
112,220
37,498
149,718
-
-
-
40,780
-
40,780
151,443
-
151,443		 £
£
£
90,580
6,880
97,460
118,764
-
118,764
-
-
-
22,764
-
22,764
304,443
37,498
341,941		 232,108
6,880
238,988
-
14,250
14,250		 -
-
-
-
14,250
14,250		 -
-
-
112,220
23,248
135,468
-
-
-		 90,580
6,880
97,460
-
-
-
112,220
23,248
135,468		 90,580
6,880
97,460
112,220
37,498
149,718
822,591
-
822,591		 90,580
6,880
97,460
-
-
-
934,811
37,498
972,309		 90,580
6,880
97,460

3 INCOME FROM CHARITABLE ACTIVITIES

Residential work
Per Charity
Prison contract - recycling scheme
Café and canteen
Food distribution
Release Potential
Per Group		 52,834
52,834
46,402
46,402
-
-
-
-
-
-
52,834
-
52,834
46,402
-
46,402
514,940
-
514,940
1,113,842
-
1,113,842
2,751
-
2,751
197,873
-
197,873
455,971
-
455,971
298,663
-
298,663
253,810
-
253,810
320,568
-
320,568
1,227,472
-
1,227,472
1,930,946
-
1,930,946
1,280,306
-
1,280,306
1,977,348
-
1,977,348

Included in Release Potential is £36,670 (2020 - nil) of funding from the National Lottery Community Fund.

4 INCOME FROM OTHER TRADING ACTIVITIES

Social value sponsorship
Per Group		 679,403
-
679,403
-
-
-
679,403
-
679,403
-
-
-

18

RECYCLING LIVES CHARITY NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED APRIL 30 2021

5 TRADING SUBSIDIARY

Turnover
Cost of sales
Gross profit
Distribution costs
Administration Expenses
Other operating income
Operating profit/loss
Interest payable and similar charges
Profit for the financial year
Total assets
Total liabilities
Net funds
Total income as above
less eliminated on consolidation - grants from charity
add back capital grant
less eliminated on consolidation amortisation capital grant
To Group income
Total costs as above
Donations
Inter company trading
To Group costs		 2021
2020
£
£
1,837,329
1,901,156
(924,711)
(1,560,407)
912,618
340,749
(20,000)
-
(373,335)
(322,557)
232,941
178,198
752,224
196,390
(5,346)
(7,421)
746,878
188,969
1,423,218
1,047,018
(1,361,585)
(909,672)
61,633
137,346
2,070,270
1,901,156
(29,450)
(6,880)
77,704
(19,426)
2,099,098
1,894,276
1,323,392
1,890,385
-
-
-
-
1,323,392
1,890,385

19

RECYCLING LIVES CHARITY

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED APRIL 30 2021

6 COSTS OF RAISING FUNDS
Fundraising
Per Charity
Direct costs
Support costs
Per Group
7 CHARITABLE EXPENDITURE
Residential work
Grants to subsidiary
Other projects
Per Charity
Grants to subsidiary eliminated
Prison contract - recycling scheme
Café and canteen
Food distribution
Donation to Subsidiary
Training placements and support
Per Group		 2021
Unrestricted
Restricted
Total		 2020
Unrestricted
Restricted
Total
£
£
£
-
-
-
-
-
16,156
-
16,156		 £
£
£
-
-
-
30,000
-
30,000
14,771
-
14,771
16,156
-
16,156		 44,771
-
44,771
233,272
-
233,272
15,200
14,250
29,450
(4,649)
11,154
6,505		 122,046
-
122,046
-
6,880
6,880
-
13,537
13,537
243,823
25,404
269,227
(15,200)
(14,250)
(29,450)
786,393
-
786,393
100,482
-
100,482
263,116
14,250
277,366
-
-
-
142,996
-
142,996		 122,046
20,417
142,463
-
(6,880)
(6,880)
1,131,813
-
1,131,813
243,731
-
243,731
214,405
6,880
221,285
-
-
-
248,780
-
248,780
1,521,610
25,404
1,547,014		 1,960,775
20,417
1,981,192
Charitable expenditure is analysed as follows:
2020/21
Residential work
Grants to subsidiary company
Other projects
Total per Charity
Prison contract - recycling scheme
Café and canteen
Food distribution
Release Potential
Total per Subsidiary
2019/20
Residential work
Grants to subsidiary company
Other projects
Total per Charity
Prison contract - recycling scheme
Café and canteen
Food distribution
Training placements and support
Total per Subsidiary		 Direct
Direct
Support
Costs
Salaries
Costs
Total
£
£
£
£
195,856
10,420
26,996
233,272
29,450
-
-
29,450
6,505
-
-
6,505
231,811
10,420
26,996
269,227
122,797
446,314
217,282
786,393
1,052
42,825
56,605
100,482
73,006
128,976
75,384
277,366
1,721
79,285
61,990
142,996
198,576
697,400
411,261
1,307,237
76,468
23,832
21,746
122,046
6,880
-
-
6,880
13,537
-
-
13,537
96,885
23,832
21,746
142,463
631,092
363,998
136,723
1,131,813
97,969
113,702
32,060
243,731
65,463
114,395
41,427
221,285
38,750
173,046
36,984
248,780
833,274
765,141
247,194
1,845,609

20

RECYCLING LIVES CHARITY

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED APRIL 30 2021

8 SUPPORT COSTS

SUPPORT COSTS
2020/21
Residential work
Prison contract - recycling scheme
Café and canteen
Food distribution
Release Potential
Fundraising		 Support
Travel &
Other
Governance
Depreciation
Total
salaries
Training
Costs
costs
Costs
2021
£
£
£
£
£
£
-
-
979
23,283
2,734
26,996
-
-
979
23,283
2,734
26,996
46,671
14,512
41,899
25,968
88,232
217,282
17,950
7,256
18,276
12,984
138
56,605
23,335
7,256
18,276
12,984
13,533
75,384
23,335
7,256
18,276
12,984
138
61,990
16,156
-
-
-
-
16,156
127,447
36,280
97,706
88,204
104,775
454,413
2019/20
Residential work
Prison contract - recycling scheme
Café and canteen
Food distribution
Release Potential
Fundraising
Governance costs
Salaries
Professional and legal fees
Overheads		 -
-
479		 Total
2020
19,550
1,717
21,746
-
-
479
41,785
6,845
21,436
15,968
3,423
7,007
20,892
3,423
7,007
20,892
3,423
7,007
14,771
-
-		 19,550
1,717
21,746
10,938
55,719
136,723
5,469
193
32,060
5,469
4,636
41,427
5,469
193
36,984
-
-
14,771
114,308
17,114
42,936		 46,895
62,458
283,711
£
£
16,156
14,771
72,047
32,126
-
-
88,203
46,897

Support costs are allocated on the following basis:

Staff costs on estimate of time spent Other costs on basis of use of resources

21

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED APRIL 30 2021

RECYCLING LIVES CHARITY

9 STAFF INFORMATION

2021
2020
a Employees
£
£
Salaries and wages
779,289
844,850
Pension costs - money purchase
14,054
15,992
Employer's nic allowance including back claim
(4,000)
(12,000)
Employer's NI contributions
62,080
69,210
851,423
918,052
Staff costs for the trading subsidiary included above
733,297
795,748
b Employees earning more than £60,000
Number
Number
£80,000 - £90,000
1
1
c The key management of the group comprise the trustees and senior staff (as set out on page1).
The trustees do not receive any remuneration for their services.
The total employee benefits of other key management were as follows:
£
£
243,390
256,489
b Average staff numbers
The average number of employees referred to above, was as follows:-
2021
2021
2020
2020
Average
Average FTE
Average
average FTE
number
number
number
number
Charity
1
1
1
1
Trading subsidiary
37
31
41
37
38
32
42
38
0 NET INCOME/(EXPENDITURE) BEFORE TRANSFERS (for the Group)
This is stated after charging/(crediting):
Auditor's remuneration:-
£
£
Audit fees - annual accounts
4,200
4,000
Accountancy fees
3,220
11,820
Operating lease rentals
80,667
80,300
Depreciation of assets held on finance leases
85,015
54,339
Depreciation of fixed assets
19,675
8,120
Trustees remuneration
-
-
Trustees expenses re travel and accommodation
-
-
Number
Number
Trustees having expenses reimbursed or paid on their behalf
-
-		 2021
2020
a Employees
£
£
Salaries and wages
779,289
844,850
Pension costs - money purchase
14,054
15,992
Employer's nic allowance including back claim
(4,000)
(12,000)
Employer's NI contributions
62,080
69,210
851,423
918,052
Staff costs for the trading subsidiary included above
733,297
795,748
b Employees earning more than £60,000
Number
Number
£80,000 - £90,000
1
1
c The key management of the group comprise the trustees and senior staff (as set out on page1).
The trustees do not receive any remuneration for their services.
The total employee benefits of other key management were as follows:
£
£
243,390
256,489
b Average staff numbers
The average number of employees referred to above, was as follows:-
2021
2021
2020
2020
Average
Average FTE
Average
average FTE
number
number
number
number
Charity
1
1
1
1
Trading subsidiary
37
31
41
37
38
32
42
38
0 NET INCOME/(EXPENDITURE) BEFORE TRANSFERS (for the Group)
This is stated after charging/(crediting):
Auditor's remuneration:-
£
£
Audit fees - annual accounts
4,200
4,000
Accountancy fees
3,220
11,820
Operating lease rentals
80,667
80,300
Depreciation of assets held on finance leases
85,015
54,339
Depreciation of fixed assets
19,675
8,120
Trustees remuneration
-
-
Trustees expenses re travel and accommodation
-
-
Number
Number
Trustees having expenses reimbursed or paid on their behalf
-
-		 2021
2020
a Employees
£
£
Salaries and wages
779,289
844,850
Pension costs - money purchase
14,054
15,992
Employer's nic allowance including back claim
(4,000)
(12,000)
Employer's NI contributions
62,080
69,210
851,423
918,052
Staff costs for the trading subsidiary included above
733,297
795,748
b Employees earning more than £60,000
Number
Number
£80,000 - £90,000
1
1
c The key management of the group comprise the trustees and senior staff (as set out on page1).
The trustees do not receive any remuneration for their services.
The total employee benefits of other key management were as follows:
£
£
243,390
256,489
b Average staff numbers
The average number of employees referred to above, was as follows:-
2021
2021
2020
2020
Average
Average FTE
Average
average FTE
number
number
number
number
Charity
1
1
1
1
Trading subsidiary
37
31
41
37
38
32
42
38
0 NET INCOME/(EXPENDITURE) BEFORE TRANSFERS (for the Group)
This is stated after charging/(crediting):
Auditor's remuneration:-
£
£
Audit fees - annual accounts
4,200
4,000
Accountancy fees
3,220
11,820
Operating lease rentals
80,667
80,300
Depreciation of assets held on finance leases
85,015
54,339
Depreciation of fixed assets
19,675
8,120
Trustees remuneration
-
-
Trustees expenses re travel and accommodation
-
-
Number
Number
Trustees having expenses reimbursed or paid on their behalf
-
-
38 32
42
38
£
£
4,200
4,000
3,220
11,820
80,667
80,300
85,015
54,339
19,675
8,120
-
-
-
-
Number
Number
-
-

10 NET INCOME/(EXPENDITURE) BEFORE TRANSFERS (for the Group)

22

RECYCLING LIVES CHARITY

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED APRIL 30 2021

11 TANGIBLE FIXED ASSETS
TANGIBLE FIXED ASSETS Equipment,
Short leasehold Motor Fixtures & IT
improvements Canteen vehicle Fittings Equipment Total
GROUP - £ £ £ £ £ £
Cost
As at May 1 2020 - as restated 3,610 8,500 49,611 325,162 14,140 401,023
Additions - - 47,115 66,862 566 114,543
Disposals - - - - - -
As at April 30 2021 3,610 8,500 96,726 392,024 14,706 515,566
Depreciation
As at May 1 2020 - as restated 3,610 8,499 3,509 128,372 8,666 152,656
Charge for the year - - 12,935 89,450 2,305 104,690
Disposals - - - - - -
As at April 30 2021 3,610 8,499 16,444 217,822 10,971 257,346
Net Book Value
As at April 30 2021 - 1 80,282 174,202 3,735 258,220
As at May 1 2020 - as restated - 1 46,102 196,790 5,474 248,367

Included in equipment, fixtures and fittings are assets held on finance leases with a net book value of £168,244 (2020 - £222,583).

Short leasehold Motor Fixtures & IT
improvements Canteen vehicle Fittings Equipment Total
COMPANY £ £ £ £ £ £
Cost
As at May 1 2020 3,610 8,500 1,800 24,601 6,734 45,245
Additions - - - 16,655 - 16,655
Disposals -
As at April 30 2021 3,610 8,500 1,800 41,256 6,734 61,900
Depreciation
As at May 1 2020 3,610 8,499 1,800 22,159 6,734 42,802
Charge for the year - - - 2,651 - 2,651
Disposals -
As at April 30 2021 3,610 8,499 1,800 24,810 6,734 45,453
Net Book Value
As at April 30 2021 - 1 - 16,446 - 16,447
As at May 1 2020 - 1 - 2,442 - 2,443

12 FIXED ASSET INVESTMENTS

The Charity owns 100% of the issued share capital of the following companies:

Name Activity Recycling Lives (Social Enterprises) Ltd (incorporated in England & Wales)

Investment Investment Company no.
2021 2020
£ £
100 100 8775890
100 100

23

RECYCLING LIVES CHARITY

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED APRIL 30 2021

13 DEBTORS
Trade debtors
Grants and income receivable
Recycling Lives (Social Enterprises) Ltd
Other debtors
Prepayments
14 CREDITORS falling due within one year
Trade creditors
Other taxes and social security
Accruals
Recycling Lives (Social Enterprises) Ltd
Finance lease creditors
Other creditors
Income and grants in advance
15 CREDITORS falling due in more than one year
Other creditors
Finance lease creditors - 2 - 5 years		 GROUP
GROUP
COMPANY
COMPANY
2021
2020
2021
2020
£
£
£
£
252,269
263,478
999
6,775
337,370
6,551
3,833
6,551
-
-
629,785
-
2,725
13,199
1,626
13,199
49,356
70,976
-
-
641,720
354,204
636,243
26,525
79,987
147,875
91
4,752
29,618
29,577
1,181
-
104,601
92,308
17,413
15,635
-
-
-
28,113
54,569
54,570
-
-
328,749
259,401
-
-
33,107
40,080
-
-
630,631
623,811
18,685
48,500
-
186,634
-
-
61,572
119,614
-
-
61,572
306,248
-
-

See the related party note for details of the other creditors due in more than one year.

24

RECYCLING LIVES CHARITY NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED APRIL 30 2021

16 STATEMENT OF FUNDS

Income
Expenditure
Transfers
30/04/2021
£
£
£
£
2,264,152
(1,537,766)
(28,345)
897,086
-
-
45,000
45,000		 942,086 - - 942,086 822,272
58,278
119,814		 942,086
16,655 (16,655) (16,655) -
(1,537,766) (25,404) (25,404) (1,563,170)
2,264,152 37,498 37,498 2,301,650
30/04/2020
01/05/2020
£
199,045
-		 199,045 4,561 4,561 203,606
Transfers
losses &
01/05/2019
Income
Expenditure
taxation
£
£
£
£
(4,865)
2,209,456
(2,005,546)
-
-
-
-
-		 - - - -
(2,005,546) (20,417) (20,417) (2,025,963)
2,209,456 6,880 6,880 2,216,336
(4,865) 18,098 18,098 13,233

25

RECYCLING LIVES CHARITY NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED APRIL 30 2021

16 STATEMENT OF FUNDS (continued)

Income
Expenditure
Transfers
30/04/2021
£
£
£
£
987,645
(243,823)
(28,345)
777,272
-
45,000
45,000		 822,272 -
-
-
-
-
-		 - 822,272
16,655 -
-
-
(16,655)
-		 (16,655) -
(243,823) (14,250)
(6,593)
(2,760)
(1,801)
-		 (25,404) (269,227)
987,645 14,250
6,593
-
-
16,655
-		 37,498 1,025,143
30/04/2020
01/05/2020
£
61,795
-		 61,795 -
-
2,760
1,801
-
-		 4,561 66,356
Transfers
losses &
01/05/2019
Income
Expenditure
taxation
£
£
£
£
46,859
136,982
(122,046)
-
-
-
-
-		 - -
-
-
-
-
-		 - -
(122,046) -
(6,880)
-
(11,248)
-
(2,289)		 (20,417) (142,463)
136,982 -
6,880
-
-
-
-		 6,880 143,862
46,859 -
-
2,760
13,049
-
2,289		 18,098 64,957

----- Start of picture text -----
COMPANY
----- End of picture text -----

----- Start of picture text -----
Unrestricted funds: General fund Designated fund Total unrestricted funds Restricted Funds: Albert Gubay Protein Work Bee Big Lottery - Weight Off your Mind Japanese Tea Garden Capital Donation - New Kitchen Reach fund Total restricted funds Total Funds
----- End of picture text -----

26

RECYCLING LIVES CHARITY NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED APRIL 30 2021

16 STATEMENT OF FUNDS (continued)

Transfers

The Charity benefited from a donation of £45,000 received towards the end of the year, and this has been designated to meet the salary costs of the residential project in 21/22.

There is no continuing restriction over the use of the kitchen and the balance has been released to general funds.

17 ANALYSIS OF NET ASSETS BETWEEN FUNDS

ANALYSIS OF NET ASSETS BETWEEN FUNDS
Company fund balances at April 30 2021
are represented by:-
Tangible fixed assets
Net current assets
Company fund balances at April 30 2020
are represented by:-
Tangible fixed assets
Net current assets
Free Reserves:
Net current assets		 Unrestricted
Restricted
Total
Funds
Funds
£
£
£
16,547
-
16,547
805,725
-
805,725
822,272
-
822,272
2,543
-
2,543
59,252
4,561
63,813
61,795
4,561
66,356
2021
2020
£
£
760,725
59,252

18 RECONCILIATION OF NET MOVEMENT IN FUNDS TO NET CASHFLOW FROM OPERATING ACTIVITIES

Net income/(expenditure) after taxation
Add back depreciation
Deduct interest income shown in investing activities
Deduct profit/add back losses on disposals of FA
Decrease/(increase) in debtors
Increase/(decrease) in creditors
Net cash generated from/(used in) operating activities		 Group
Group
Charity
Charity
2021
2020
2021
2020
£
£
£
£
738,480
190,373
755,916
1,399
104,690
62,459
2,651
1,717
-
-
-
-
-
-
-
-
(287,516)
143,609
(609,718)
(26,525)
6,821
(172,269)
(29,815)
26,045
562,475
224,172
119,034
2,636
Movement in net debt:
Group
Cash and cash equivalents
Cash at bank and in hand
Debt
Finance lease obligations
Cash and cash equivalents net of debt		 at 31/3/20
cashflows
New finance
leases
other non
cash
as 31/3/21
£
£
£
£
£
531,094
203,255
-
-
734,349
(174,184)
(58,043)
-
-
(116,141)
356,910
618,208

There are no borrowings in the Charity.

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RECYCLING LIVES CHARITY NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED APRIL 30 2021

19 LEASE COMMITMENTS
Operating leases
Due within one year
Due within 2 to 5 years
Due in more than 5 years		 2021
2020
£
£
153,500
133,417
565,708
492,000
695,000
820,000
1,414,208
1,445,417

The above figures exclude service charges.

Included in the above are commitments that arise under a formal lease between the Charity and Recycling Lives Ltd (RLL), for the accommodation space at the registered office. The relevant figures are as follows:

Due within one year
Due within 2 to 5 years
Due in more than 5 years		 123,000
123,000
492,000
492,000
695,000
820,000
1,310,000
1,435,000

The Charity has only occupied one of two floors covered by the lease and RLL has never sought to charge the full rent, charging only what it believes the Charity can afford in any year following discussions with the Charity.

RLL has rented out the unoccupied space to other tenants and retained the income for its own use.

The Charity and RLL are in the process of formalising the current position and agreeing a formal variation in the lease terms.

Finance leases
Due within one year
Due between 2 and 5 years
Less finance lease interest		 59,919
59,916
65,088
125,007
125,007
184,923
(8,916)
(10,739)
116,091
174,184

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RECYCLING LIVES CHARITY NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED APRIL 30 2021

20 CONSTITUTION

The Company is limited by guarantee and does not have a share capital. In the event of the Company being wound up the members are committed to contributing £1 each.

21 TAXATION

The company is a registered charity and is entitled to claim annual exemption from UK corporation tax under sections 466 to 477 of the Corporation Tax Act 2010.

22 CAPITAL COMMITMENTS

The company had the no capital commitments at the year end (2020 - none).

23 Related party transactions

Charity and subsidiary

At 30[th] April 2021 the subsidiary Recycling Lives (Social Enterprise) Limited owed to the parent charitable company £629,785 (2020 - the Charity owed £28,113). The amount is non-interest bearing and unsecured.

Recycling Lives

The charitable group now has a simple commercial trading relationship with Recycling Lives Ltd. This involves contracting recycling services and a formal sponsorship arrangement. No trustees or key personnel or their families have any formal relationship with the business.

The Group accounts include the following total amounts for services supplied to and by commercial group companies:

Skip hire services

Throughout both years, Recycling Lives (Social Enterprises) Ltd (RLSE) has acted as agent for Recycling Lives Ltd (RLL) in respect of a skip hire contract that invoiced c£1.2m in 20/21 (prior year c£1.4m),and was invoiced the same by RLL. The income and costs are not included in the profit and loss account of SE. At the year end there was c£202k outstanding from the skip hire company. At the year end RLL was owed £328,749 by RLSE for this.

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